MicroStrategy Incorporated, an American software development company, has made an ambitious plan to raise up to $750 million through stock sales. What makes this move particularly intriguing is MicroStrategy’s intention to channel these funds into further bolstering its Bitcoin (BTC) investment.
MicroStrategy Partners with Financial Firms
MicroStrategy stated in a recent court filing to the US Securities and Exchange Commission (SEC) that it is collaborating with three prominent firms.
The primary purpose of this agreement is to enable the sale of MicroStrategy’s class A common stock, potentially raising substantial funds that could be allocated for an array of corporate initiatives, including the acquisition of more Bitcoin and reinforcing working capital.
The partnering firms, Cowen and Company, Canaccord Genuity, and Berenberg Capital, are set to play a pivotal role in facilitating this innovative financial endeavor. These partnerships leverage the expertise of seasoned financial professionals, ensuring a well-structured approach to the stock sale and the subsequent utilization of the funds.
MicroStrategy’s Meteoric Rise
MicroStrategy, known for its pioneering embrace of Bitcoin, has seen its shares soar to new heights, riding the wave of the ongoing Bitcoin rally.
In a remarkable turn of events, the company’s stock has experienced a staggering surge of nearly 200% since the beginning of this year. From an opening price of $145.02 per share on January 3rd, MicroStrategy’s shares have rocketed to an impressive $434.98 at the time of this publication, as reported by data from Google Finance.
MicroStrategy’s Commitment to Bitcoin Purchase
The company’s remarkable stock performance also underscores the influence of strong leadership and strategic decision-making.
MicroStrategy’s CEO, Michael Saylor, has been a vocal advocate for Bitcoin, championing its attributes as a store of value and a hedge against inflation. His unwavering commitment to Bitcoin purchase has not only positioned MicroStrategy as a trailblazer but has also sparked conversations across the corporate world about the potential benefits of Bitcoin integration.
The balance sheet of the business software company shows that MicroStrategy bought 7,500 BTC in the first quarter of 2023. MicroStrategy’s total BTC holdings, which number around 140,000, are worth $4 billion, according to the current market price.
Meanwhile, the prominent USDT stablecoin issuer Tether Holdings is getting set to rival MicroStrategy. The company’s recently released Q1 2023 report has unveiled the purchase of a substantial 52,670 Bitcoins using additional reserves.